POSB Small Savings Schemes Details, Salient Features, Claim Sanctions Limit

In this post, we have posted very valuable content for Postal Staff and general public – All details related to POSB small savings schemes, Post Office Death Claim Sanction Limit, POSB Interest rate etc.

NoCatMin/Initial Dep In RsSubsq dep in multiple Max Dep in RsJoint A/c EligibilityNo of Accounts
1SBInitial-500
Min Wdl-50
Min dep-10 & aboveNo LimitTwo Adults OnlyAn individual can open only 1 single account & 1 joint account with one person
2SSA250501,50,000/-. in a F.Y.NAAn account under this Scheme may be
opened for a maximum of two girl
children in one family.
3PPF500501,50,000/-. in a F.Y.NAAn individual may open only one acct
also open an account on behalf of each
minor, Provided that only one acct shall
be opened in the name of each minor.
4SCSS1000100015 lakh in all account With spouse onlyAn individual may open account in individual capacity, or jointly with spouse subject to max Deposit limit of Rs 15 lakhs.
5MIS100010004.50 lakh/individual. 9 lakh in joint acctUp to Three adultsAn individual may open more than one account in his/her name or jointly with others
6RD10010No LimitUp to Three adultsAn individual may open more than one account in his/her name or jointly with others
7TD1000100 No LimitUp to Three adultsAn individual may open more than one account in his/her name or jointly with others
8NSC1000100No LimitUp to Three adultsAn individual may open more than one account in his/her name or jointly with others
9KVP1000100No LimitUp to Three adultsAn individual may open more than one account in his/her name or jointly with others

• Presentation of Passbook is mandatory while making withdrawal and closures.
• An Illiterate or blind or visually challenged may open Joint Account with literate depositor.
• Nomination is mandatory for all types of accts and cancel or change the existing nomination by paying Rs 50+GST.
No fee up to 10 Chq leaves in a calendar year and thereafter Rs 2 per Chq leaves will be collected.
• Cheque Dishonored Fee- Rs 100+ GST.
• Duplicate of PB issued at HO. No F.I.R needed. Duplicate pass book- Rs 50+GST.
Transfer of Accounts will be done at HO only for HO and all SOs. Fee Rs 100+GST.
• If Applied for transfer given at any other HOs or SOs, application of transfer with document sent to Home Sol HO for transfer and AOF & KYC documents should be sent to SBCO. (CBS Manual).
• If account is transferred and closed by the depositor, the mode of payment should be done through SB or cheque only.
• Single account cannot be converted in to joint acct and vice versa except in the case of death of the depositor in joint account.
No interest shall be payable on an account opened or maintained or on a deposit made in contravention of rules.
ACG-17 for payment of commission to SAS/MPKBY Agents has been discontinued.
• In SAS agent system, No commission will be paid on the investment thru agents where agent receipt Book number and Authority number not noted in SB 103.
• Mentioning ASLASS number in RD Schedule is mandatory if it is not supplied, it should be filled with “Applied for”.
• Cash Transaction up to Rs 50000/- shall be allowed at other SOLs in an account in a day.
• No BPM shall accept cash deposit for more than Rs 50000/- in an account in a day.
• In BOs, Deposits in PPF/SCSS/MIS/KVP/NSC are to be accepted by wdl form or by Cheque only.
• In BOs, The limit of Withdrawal has been revised to Rs 20000/- per individual.
TDS of 2% on aggregate cash withdrawals in excess of Rs 20 lakhs in a year and TDS of 5 % on aggregate cash withdrawals in excess of Rs 1 crore in a year shall be applicable.
• Payment of Interest and maturity value for (MIS, SCSS, and TD/RD/KVP/NSC) in to account holder’s bank account has been implemented in finacle through ECS outward credit functionality.
• POs shall not allow investments thru Wdl form under SAS/MPKBY agency system for SB schemes.
In SAS agency system, Re-investment of maturity value thru Withdrawal form is allowed & investment by cash up to Rs 20000 or by Cheque.
• Illiterate depositor can avail cheque facility only if have joint account with literate depositor.
Minor account operated by guardian can avail cheque facility.
Transfer of accounts is allowed for categories NSS 87 & 92 also in CBS offices (At HOs).
Messenger is allowed for payment after getting Form-12 along with KYC documents (Senior Citizen, illness, Differently abled) and” Authorization Accepted” remarks must write by SPM/APM.
• In case of death of Minor, In SSA scheme – Guardian may claim the closure amount, but in PPF- Nominee may claim the closure amt. If nomination not registered, Legal Heir may claim the amount.
“PM CARES FOR Children scheme” has been introduced from 29.10.2021 for child who has lost both parents or last surviving parent between 11.03.2020 to 31.12.2021 due to COVID-19 pandemic.

POST OFFICE SAVINGS ACCOUNT SALIENT FEATURES

• Can only open General Savings acct. There is no separate Pensions account and basic savings acct.
• Minor can open any one of the following accounts. A guardian on behalf of a minor (or)A minor who has attained 10 yrs of age in his own name.
• An account holder can nominate up to maximum of 4 individuals.
Rs50 will be deducted at the end of the financial year for accts not maintaining a minimum balance of Rs500.
No interest shall be allowed on an account for any month in which the balance at credit is below Rs500 at any time between 10th and last day of the calendar month.
Two witnesses are necessary for nomination done by illiterate during opening of account and variation or cancellation of nomination. Witness not required for literate.
• For issue of statement of account , Rs 20/-+GST

SUKANYA SAMRIDHI ACCOUNT SALIENT FEATURES

• The account may be opened by one of the guardian in the name of a girl child, who has not attained the age of 10 years.
• Deposits may be made in the account till the completion of a period of fifteen years from the date of opening of the acct.
Withdrawal is allowed up to 50% of amount in the account at the end of the financial year preceding the year of application for withdrawal, Shall be allowed for the purpose that such withdrawal shall be allowed after the account holder attains the age of 18 years or has passed 10th standard, whichever is earlier.
• In extreme compassionate ground(Life threatening disease), PMC is allowed after getting proper approval from competent authority provided that that A/C not closed before 5 years.
• The account shall mature on completion of a period of 21 years from the date of its opening.
• The account may also be closed before 21 years on production of intended marriage certificate of account holder.

NATIONAL SAVINGS RECURRING DEPOSIT SALIENT FEATURES

• If there are not more than four defaults in monthly deposits, the account holder may at his option, extend the maturity period of the account by as many months as the no of defaults and deposit the defaulted Installments during the extended period.
• Default fee- Rs 1 for every 100 to be paid along with Monthly denomination.
• Rebate for an account of Rs 100 denomination, is payable of Rs 40/- for every 12 deposits and Rs 10 for not less than 6 deposits.
• Loan amount is in multiples of Rs 10 and admissible after 1 year @ 50% of balance in an account.
• Loan interest- RD interest+ 2%.
PMC applicable after 3 years of opening of an account.

NATIONAL SAVINGS TIME DEPOSIT SALIENT FEATURES

• PMC is allowed after 6 months up to 1 year with SB rate of interest.
• In PMC, after 1 year, For Completed Years – Quarterly Compound Interest at a reduced rate of 2% less than the actual interest. For Completed months – POSA interest rate.
• A/C may be extended for which it was initially opened. However a time limit for extension is specified after repayment for 1 Yr TD is 6 Months, 2 Yr TD is 12 Months, 3 Yr TD is 18 Months, 5 Yr TD is 18 Months.
Extension is allowed only twice after initial repayment date.
• An Account may be pledged or transferred as security, on an application made by the depositor. If the account is pledged, agent commission not allowed.
• Pledge fee- Rs 100+GST.Pledge release fee- Nil.
• In the event of death of depositor, the surviving nominee may close the account or continue the account (By transfer) and receive the amt of deposit along with interest in the manner provided for in this Scheme.
In 5 yr TD, Can claim IT exemption under section 80c.

PUBLIC PROVIDENT FUND SCHEME SALIENT FEATURES

• Loan is applicable at any time after the expiry of 3 years before expiry of 5 years from the end of the year in which the initial subscription was made, a sum of whole rupees not exceeding 25% of the amount in his credit at the end of the 2nd year immediately preceding the year in which the loan is applied for.
• Loan Interest: 1% – if loan is fully repaid within 36 months, outstanding loan amount after 36 months is calculated at 6% per annum with effect from the 1st day of the month following the month in which the loan was taken to the last day of the month in which it was finally repaid.
• Withdrawal from account is allowed any time after the expiry of five years from the end of the year in which the account was opened. An amount not exceeding 50% of the amount at the end of the 4th yr immediately preceding the year of withdrawal or at the end of the preceding year, whichever is lower.
• Only when loan & loan interest is fully repaid then only the withdrawal is allowed.
PMC is allowed only for(i) treatment of serious ailments or life threatening diseases to the account holder, spouse, or dependent children or Parents
• (ii)Fee payment towards the higher Education to the account holder or the dependent children, on change in the residency status of the account holder on production of copy of passport or Visa or income tax return, with deduction of 1% from date of opening after getting proper approval from competent authority provided that A/C not closed before 5 financial years.
• Account can be closed after 15 years from the end of year in which account was opened, Incase death of depositor or normal closure, balance in the account shall earn interest till the end of the month preceding the month in which payment is made.
• PPF account can be extended for 5 years after maturity with/without Deposits within 1 year from maturity by submitting application in Form-4.
• If continued, one withdrawal every year is eligible subject to the condition that withdrawal shall not exceed Sixty percent of the balance at his credit at the commencement of the said period.
• In case Account is retained w/o deposits, account holder can take 1 Wdl in each financial year.
• Can claim IT exemption under section 80c.

NATIONAL MONTHLY INCOME ACCOUNT SALIENT FEATURES

• If a depositor has made deposit in excess of prescribed limit, this excess amt will be paid immediately along with interest POSA rate from date of deposit to end of the month preceding the month in which refund is made.
• If PMC is allowed, after 1 yr before 3 yrs- 2% deduction, after 3 yrs before 5 yrs-1% deduction.
• Account can be closed after 5 years from opening of an account.
• Incase death of depositor; interest will be paid up to month preceding the month in which refund is made.

NATIONAL SAVINGS CERTIFICATES (VIII ISSUE) SALIENT FEATURES

No PMC is allowed except on account of death, forfeiture by pledge or in case of court order.
• In such cases, if it closed before 1 yr, No interest shall be payable. Between 1 to 3 years, POSA interest payable. After 3 years as per table applicable from time to time.
• Account can be closed after 5 years, in case of death of the depositor, account can be closed immediately.
• On the account of death of account holder, an account may be transferred from one individual to another (Nominee), subject to the condition that the transferee is eligible to open an account under this Scheme.
• An Acct may be pledged or transferred as security. Pledge fee- Rs 100+GST.Pldg release fee- Nil.
• As per SB Order 30/2020, old NSC certificates- DPB should be treated as issue of Passbook in lieu of lost or mutilated certificates per registration.
• Can claim IT exemption under section 80c.

KISAN VIKAS PATRA SALIENT FEATURES

• Deposits made in the acct shall double on maturity. Mat period shall be announced time to time.
• PMC is allowed after 2.5 years.
• In such cases, if an account is closed any time before the expiry of two years and six months, POSA interest shall be payable for completed months.
After the expiry of 2 years and 6 months, int shall be payable as per table given time to time.
• In case of death of the depositor, Account can be closed immediately.
• On the account of death of account holder, an account may be transferred from one individual to another (Nominee), subject to the condition that the transferee is eligible to open an account under this Scheme.
• An Acct may be pledged or transferred as security. Pledge fee- Rs 100+GST.Pldg release fee- Nil.
• As per SB Order 30/2020, old KVP certificates- DPB should be treated as issue of Passbook in lieu of lost or mutilated certificates per registration.

SENIOR CITIZENS SAVINGS SCHEME SALIENT FEATURES

• An individual who has attained the age of 60 years or superannuation personnel who has attained age of 55 years and Retired defense personnel who has attained age of 50 years can open account.
• In case of a joint account, the age of the first account holder shall be considered to determine the eligibility to open the acct and there shall be no age-limit for the second applicant.
• If PMC is allowed before 1 year, the int paid within 1 yr has to be fully recovered. after 1 yr before 2 yrs, deduction of 1.5 % applicable, after 2 years before 5 years, deduction of 1% applicable.
• Account can be closed after 5 years from opening of an account. Incase death of depositor, when spouse is a sole nominee, the spouse can continue the account only when he/she meets the conditions of the scheme on the date of death of the account holder.
• If the spouse has separate SCSS in his/her name, then the SCSS account in the name of the deceased depositor cannot be continued.
• The depositor may extend the account once for a further period of 3 years by making an application in Form-B to the post office within a period of 1 yr after the maturity period of 5 yrs.
• The account holder may close the account any time after one year from the date of extension of account without any deduction.
• If depositor age <60, TDS should not be deducted for interest up to Rs 40000/annum and
• If depositor age> 60, TDS should not be deducted for interest up to Rs 50000/annum.
No TDS should be deducted if depositor submitted 15G/H.
• Can claim IT exemption under section 80c.

SANCTION LIMITS FOR CLAIM CLOSURE

Name of AuthorityWhere Nomination existsWhere legal evidence availableWhere no nomination exists or no legal evidence is available
Sub Postmasters of Time scale Department SOs Sub Postmasters of LSG Post officesNo Limit50,000/-
Note: Above this limit cases to be sent to DO
50,000 Note: Above this limit cases to be sent to DO
Sub Postmasters/ Deputy Postmaster/ Postmasters of HSG ( All Non Gazetted) SOs and HPOsNo LimitNo Limit1,00,000
Note: Above this limit cases to be sent to DO
Senior PM/ Dep. Chief PM/ SPO’s.(All Gazette Grp-B HPOs and Divns). Chief PMs in GPO/ HO. SPO’s (All gazetted Grp A HPOs and Divns) & Equivalent authorities in GPOs).No LimitNo Limit5,00,000/-

• If the eligible amount in a deceased account is above Rs. 5 lakh where no nomination or legal evidence available, the amount shall be paid to the claimant on submission of ‘Succession Certificate’ issued by the court.
• Claims with legal evidence/ without nomination can be accepted only after 6 months from the date of death of the depositor.
• In respect of PPF, SSA and SCSS Schemes, SPM/PM of the office of deposit is competent authority to sanction the claims.

INTEREST ELIGIBILITY (For Claim Cases)

TypeOptionInterest Eligibility
SBCan close the account anytime Up to the Month Preceding the month in which refund
RD(i)Can close the account immediately
(ii)Can transfer account in his/her name and
continue till maturity by application
(i)If closed before maturity, Up to 11 months deposits will be refunded, 12 months and above as per table.
(ii)If continued till maturity, full maturity value
TD (i)Can close the account immediately
(ii)Can transfer account in his/her name and continue till maturity by application
For completed years – TD rate of Interest for completed years (C.I) completed months -SB rate of Interest (S.I).
MISCan close the account anytime Up to Month Preceding the month in which refund is made. If claimed after maturity PMI* Eligible.
PPFCan close the account anytimePPF rate Up to Month Preceding the month in which refund is made.
SCSS(i)If spouse is sole nominee and meets eligibility criteria, she can get account transferred in her name and continue till maturity provided she does not have any SCSS account in her name.
(ii) Can close the account immediately
(i)If continued by Spouse, SCSS rate of interest till maturity.
(ii)If closed Immediately, Up to date of death, SCSS interest applicable after that SB interest is applicable.
SSACan close the account anytimeSSA Interest till date of death of depositor and SB interest after date of death till day proceeding to date of payment.
KVP(i)Can close the account immediately
(ii)Can transfer account in his/her name and
continue till maturity by application
(i)If continued till maturity, Full maturity value (ii) Before 2.5 yrs, POSA rate (iii)After 2.5 yrs, As per table
NSC(i)Can close the account immediately
(ii)Can transfer account in his/her name and
continue till maturity by application
(i)If continued till maturity, Full maturity value (ii) Before 1 yr, No interest (iii)1 to 3 yrs, POSA interest rate
(iv)after 3 years, As per table

INTEREST RATES FOR SB SCHEMES

FromToSBRD1 TD2 TD3 TD5 TDMIS*SCSSPPFSSANSCKVP
01.03.0330.11.113.5(7.5) 728.96.256.507.257.508.009.008.00
01.12.1131.03.124.0(8.0) 738.627.707.808.008.308.209.008.60
01.04.1231.03.134.0(8.4) 746.518.208.308.408.508.509.308.80
01.04.1331.03.144.0(8.3) 744.538.208.208.308.408.409.208.70
01.04.1431.03.154.0(8.4) 746.538.408.408.408.508.409.208.709.10
01.04.1531.03.164.08.408.408.408.408.508.409.308.709.20
01.04.1630.03.164.0(7.4) 726.97)7.107.207.407.907.808.608.108.60
01.07.1630.09.164.07.407.107.207.407.907.808.608.108.60
01.10.1631.12.164.07.307.007.107.307.807.708.508.008.50
01.01.1731.03.174.0(7.3) 725.05)7.007.107.307.807.708.508.008.50
01.04.1730.06.174.0(7.2) 723.14)6.907.007.207.707.608.407.908.40
01.07.1730.09.174.07.106.806.907.107.607.508.307.808.30
01.10.1731.12.174.0(7.1) 721.23)6.806.907.107.607.508.307.808.307.807.5(115 M)
01.01.1831.03.184.0(6.9) 717.43)6.606.706.907.407.308.307.608.107.607.3(113 M)
01.04.1830.06.184.0(6.9) 717.43)6.606.706.907.407.308.307.608.107.607.3(113 M)
01.07.1830.09.184.0(6.9) 717.43)6.606.706.907.407.308.307.608.107.607.3(118 M)
01.10.1831.12.184.0(7.3) 725.05)6.907.007.207.807.708.708.008.508.007.7(112 M)
01.01.1931.03.194.0(7.3) 725.05)7.007.007.007.807.708.708.008.508.007.7(112 M)
01.04.1931.06.194.0(7.3) 725.05)7.007.007.007.807.708.708.008.508.007.7(112 M)
01.07.1931.12.194.0(7.2) 723.14)6.906.906.907.77.68.67.98.47.97.6(113 M)
01.01.2031.03.204.0(7.2) 723.14)6.906.906.97.77.68.67.98.47.97.6(113 M)
01.04.2031.03.214.0(5.8) 697.00)5.505.505.506.76.67.47.17.66.86.9(124 M)
01.04.2131.12.214.0(5.8) 697.00)5.505.505.506.76.67.47.17.66.86.9(124 M)

*MIS Bonus Up to 12.02.2006- 10 % bonus From 13.02.2006 to 07.12.2007- No bonus
From 08.12.2007 to 30.11.2011- 5% Bonus. From 01.12.2011 – No bonus

S.No.SchemeInterest Calculation
1SBInterest ( Low Balance between end of 10th day to end of Month) calculated for month and paid annually
2RDCalculated Quarterly and paid during maturity of an account.
3MISCalculated and paid Monthly.
4TDCalculated Quarterly (Compounded) and paid annually.
5SCSSCalculated Quarterly and paid Quarterly.
6PPFInterest (Low Balance between end of 5th day to end of Month) calculated for month and compounded annually.
7SSAInterest (Low Balance between end of 5th day to end of Month) calculated for month and compounded annually.
8NSCCalculated Annually.
9KVPCalculated Annually.

HOLIDAYS

MonthCLOSED HOLIDAYSRESTRICTED HOLIDAYS
JANUARY14,261,9,13,15,16,18
FEBRUARYNIL5,15,16,19,26
MARCHNIL1,17,18
APRIL14,152,10,14,15,17,29
MAY3,161,9
JUNENILNIL
JULY101
AUGUST9,15,3111,16,18,19
SEPTEMBERNIL8
OCTOBER2,4,5,9,242,3,9,13,24,25,26,30
NOVEMBER824
DECEMBER2524,29

Download PDF

You might also like
1 Comment
  1. Balu Kanhu Kor says

    Sir very very useful information for postal staff like me

Leave A Reply

Your email address will not be published.

error: Content is protected !!